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Arbitral Award – One Award applied in other 9 References and secondly, such an Award for specific performance of the agreement in respect of immovable property without its identity with certainty is illegal

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Plot No.EE-16 in Beta Sector in the area of Taluka Pen District Raigad was allotted by the Petitioner to the Respondents – Claimants vide allotment letter dated 15.10.2008 and 28.5.2009.   However, there was disputes between the parties.  Reference to arbitration was made.

In these cases, the learned Arbitrator had applied the Award in Reference / Claim No.5 in Arbitration Petition (L) No.28284 of 2022 to other 9 References, wherein separate Statements of Claims, Defence and Affidavits in lieu of examination-in-chief were filed.  Moreover, the claimants / witnesses were separately cross-examined in the references and final arguments addressed in all 10 references. There was no understanding between the parties for the learned Arbitrator to hold that the reasoning in one Award would form the basis for Awards in other 9 references as well.  Moreover, the minutes of the meetings of the learned Arbitrator do not show that the pleadings, correspondence, facts and the evidence in all 10 references would be treated as common.

Considering all these facts, it would have been prudent for the learned Arbitrator to render separate awards with separate reasons and findings.

In view of this, the unreasoned Awards in 9 out of 10 References were set-aside.

Coming to the reasoned Award in respect of specific performance of the agreement in respect of the immovable property, it was held that if property is not described for its identity with certainty such an agreement is not capable of specific performance and therefore, void.  Moreover, the claimants did not aver and prove readiness and willingness for specific performance as required by Section 16© of the Specific Relief Act.

Judgment dated 21.2.2024 in Arrow Engineering Limited Vs. Punit Jitendra Chande and another in Arbitration Petition (L) NO.28284 of 2022 with connected matters

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